The U.S. Securities and Exchange Commission (SEC) will not approve the listing of leveraged bitcoin exchange-traded funds (ETF).
- The SEC instructed at least one prospective ETF provider not to proceed with its plans for a leveraged funds, the Wall Street Journal reported on Thursday, citing a person familiar with the matter.
- The U.S. markets regulator wishes to limit bitcoin-related investment vehicles to those that provide un-leveraged exposure - in others words not comprised of borrowed funds.
- The report emerges two days after Valkyrie Investments filed to offer 1.25x leveraged bitcoin futures ETF.
- After dozens of applications from different providers, the SEC finally approved the listing of a bitcoin futures ETF earlier this month. ProShares’ fund started trading under the ticker symbol BITO on the New York Stock Exchange on Oct. 19. It has contributed to bitcoin’s price surge, leading to the cryptocurrency reaching a new all-time high of over $66,000.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.